Economic development and urbanisation: The Link

Economic development is quite a broad term and doesn't necessarily mean an increase in GDP, i.e. economic growth.

Think about the early forms of urbanisation, especially in Europe.
The agricultural revolution brought with it great sectorial change to Britain.
Surpluses in the rural economy meant that people could diversify and focus upon trade and commerce. The surpluses allowed for greater natural increase. This was a kind of economic development, it was directly related to urbanisation. [a catalyst for it or a driver of development?]
'Chicken and egg' question. A large population is needed for the division of labour.

Then the industrial revolution hailed a great expansion of urban areas. The economy developed in the UK, with less focus on farming and more investment in coal powered factories located in cities.

Developments:
-Improvement of transport systems
-Improvements in health care
-New forms of power. Coal e.g. Newcastle
-Development of the factory system

Newcastle upon Tyne is a prime example of a city whose expansion was based upon industrialisation [economic development].

Newcastle's development as a major city owed most to its central role in the production and export of coal. The phrase "taking coals to Newcastle" was first recorded in 1538; it proverbially denotes bringing a particular commodity to a place that has more than enough of it already.

 

In the 19th century, shipbuilding and heavy engineering were central to the city's prosperity; and the city was a powerhouse of the Industrial Revolution.

 

 

Note: Most world cities are located in developed countries. These world cities are dominated by tertiary jobs. They have shed their manufacturing/mining/industrial activities onto developing countries. GLOBALISATION [THE DISPERSAL OF PRODUCTION WORLDWIDE] Thus we see the highest rates of urbanisation in these areas. They are experiencing a similar revolution in their economies. But the rate is exponential in comparison. 

The 1988 report of the National Commission on Urbanisation to the Government of India notes that, while India's urban dwellers have increased four times over since 1947 (from some 50 to over 200 million), public attitudes to cities have remained ambivalent:

[Is economic development being outstripped by the rate of urbanisation...is urbanisation having a differing effect on LEDCs compared to MEDCs because they are at differing stages of economic development]

"On the one hand, we see them as heroic engines of growth...On the other, these urban centres have also generated the most brutal and inhuman living conditions".